Dynamic Stochastic General Equilibrium models

GPTKB entity

Statements (51)
Predicate Object
gptkbp:instanceOf macroeconomic model
gptkbp:abbreviation gptkb:DSGE_models
gptkbp:application monetary policy analysis
fiscal policy analysis
business cycle analysis
gptkbp:assumes market clearing
intertemporal optimization
representative agents
gptkbp:component gptkb:economic_policy
gptkb:government
households
firms
gptkbp:criticizedFor gptkb:Joseph_Stiglitz
gptkb:Paul_Romer
gptkb:Olivier_Blanchard
excessive reliance on rational expectations
lack of empirical fit
simplifying assumptions
gptkbp:developedBy 1980s
gptkbp:feature dynamic optimization
rational expectations
general equilibrium
microeconomic foundations
stochastic shocks
https://www.w3.org/2000/01/rdf-schema#label Dynamic Stochastic General Equilibrium models
gptkbp:mathematicallyFormulatedAs system of equations
gptkbp:mayInclude nominal rigidities
price stickiness
wage stickiness
financial frictions
gptkbp:notableFigure gptkb:Edward_Prescott
gptkb:Finn_Kydland
gptkb:Robert_Lucas_Jr.
gptkb:Thomas_Sargent
gptkb:Lars_Peter_Hansen
gptkb:Christiano,_Eichenbaum,_and_Evans
gptkbp:originatedIn real business cycle theory
gptkbp:relatedTo gptkb:Overlapping_Generations_models
New Keynesian models
Real Business Cycle models
gptkbp:solvedBy gptkb:simulation
calibration
estimation
gptkbp:usedBy policy makers
central banks
gptkbp:usedFor counterfactual analysis
policy evaluation
forecasting macroeconomic variables
gptkbp:usedIn macroeconomics
gptkbp:bfsParent gptkb:New_Keynesian_economics
gptkbp:bfsLayer 6